Posted on August 13, 2019
SPRINGFIELD --- Drawing upon three decades of experience making loans to strengthen Springfield neighborhoods, the Massachusetts Housing Partnership (MHP) recently closed on a $700,000 loan to support the preservation of St. James Commons.
The loan helped Valley Real Estate - working with the real estate consulting firm MBL Housing and Development – rehabilitate 42 affordable apartments located in two historic buildings, one of which was condemned in 2014 due to structural defects.
St. James Commons is located along State Street, a major economic corridor leading into downtown Springfield. This area recently received $13 million in infrastructure and beautification improvements and the rehabilitation of St. James Commons continues this neighborhood’s revitalization.
“MHP is proud to be able to continue its long history of supporting Springfield neighborhoods and preserving its historic apartment buildings,” said Nancy McCafferty, senior relationship manager at MHP.
The loan increases MHP’s lending in Springfield to almost $46 million for the financing of 39 projects and over 2,600 apartments, 1,930 of which are affordable. MHP’s loan size in Springfield has ranged from $111,000 to $3.6 million and it has financed projects with as few as five units and as many as 314.
St. James Commons involved the rehabilitation of a 26-unit, 117-year-old apartment building at 573 State Street and a 16-unit, 102-year-old apartment building one block south at 7 Lillian Street. The State Street building was condemned in 2014 due to structural failures and water damage. Both buildings went under considerable renovation, including new roofing, insulation, energy-efficient boilers and heating systems, kitchen and baths, windows, and updated fire alarms.
The $13.6 million renovation was supported with federal and state historic tax credits, and federal low-income housing tax credits awarded by the state Department of Housing and Community Development (DHCD). DHCD provided additional $731,000 in other subsidy funds. The Massachusetts Housing Investment Corp. provided $8.4 million in tax credit investment, TD Bank North provided $6.3 million in construction financing and MHP provided long-term financing from its bank-funded loan pool.
“St. James Commons has been an important affordable housing project in the City of Springfield and its rehabilitation has ensured its preservation of affordability for years to come,” said Peter Graham, President of MBL Housing and Development.
Check out MHP’s rental financing page for more information about MHP’s financing options or contact Nancy McCafferty at nmccafferty@mhp.net.